Parliament passes law establishing National Macro-prudential Supervisory Committee

Autor: Gabriel Zamfirescu, Redactor
Publicat: 16-03-2016 17:06

The Parliament on Wednesday cast the final vote on the law on establishing the National Macro-prudential Supervisory Committee, Deputy Governor of the National Bank of Romania (BNR, the central bank) Bogdan Olteanu announced on Wednesday.

The Committee will become operational as soon as the law is published in the Official Gazette, after which we have a national institutionalized framework in which to discuss threats to financial stability, he told a forum on "Romania's development strategy, regionalization and euro convergence" organized by Profit.ro.

According to representatives of the central bank, such a body was set up also at the European Union level - the European Systemic Risk Board (ESRB) - due to the developments during the crisis and after it. The ESRB, in turn, has issued the recommendation that each state establish a similar committee. According to the recommendation, this body could be set up either within the National Bank or the Financial Supervisory Authority, or as an independent body. Romania has chosen the third option, but this was rejected by the Parliament.

In the European Union, 24 countries have adopted the law and have set up this institution. The National Macro-prudential Supervisory Committee assesses the risks on the economy and makes recommendations, including to the Government, in order to combat them, and if the Government does not consider these recommendations, it assumes responsibility and can no longer invoke the fact that it was not warned, the National Bank Governor Mugur Isarescu said last summer. According to him, the Committee has a preventive role; it will assess the risks to national economy so that another financial crisis may be anticipated and its effects limited.

Agerpres